What Are Smart Contracts? The Technology Behind Crypto Tokens and DApps

An architectural comparison diagram from web2-centralized-app-vs-web3-decentralized-dapp.jpg contrasting a Web2 Centralized App infrastructure on the left with a secure Web3 Decentralized DApp node network featuring interconnected padlocks on the right

1. Executive Summary & Theoretical Framework The dawn of Bitcoin in 2009 introduced the world to the revolutionary potential of a decentralized, distributed ledger capable of securely transferring value without traditional intermediaries. While Bitcoin successfully established a protocol for a peer-to-peer digital currency, its underlying scripting language was intentionally limited in functionality to optimize security … Read more